Bank of Beijing Co Ltd said on Friday that it has got the necessary board approvals for the esta
blishment of a joint venture with Netherlands-based ING Bank NV, in which the latter will be the majority partner.
With a total investment of 3 billion yuan ($448 million), the forthcoming joint-venture bank, whic
h is still waiting for regulatory approval, may become China’s first commercial lender in which a for
eign shareholder has a controlling interest. According to the plan, ING Bank will hold a 51 percent stake, and Bank of Beijing 49 percent.
Drawing on the experience of ING Bank in the successful development of direct ba
nking services, the joint venture will build a brand in the area of digital banking with the help of financial tec
hnologies and try to become a benchmark in terms of the implementation of China’s push to further open
up its financial sector to foreign investors, said the mid-tier commercial lender BOB in an announcement.
Different from the traditional counter-based model, the direct banking model uses e-cha
nnels to provide financial products and therefore has no restriction of time, regions or geographic branches.